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  1. 1. The Travel & Tourism Competitiveness Report 2013 Reducing Barriers to Economic Growth and Job Creation Insight Report Jennifer Blanke and Thea Chiesa, editors
  2. 2. Insight Report Jennifer Blanke Thea Chiesa Editors The Travel & Tourism Competitiveness Report 2013 Reducing Barriers to Economic Growth and Job Creation © 2013 World Economic Forum
  3. 3. The Travel & Tourism Competitiveness Report 2013 is published by the World Economic Forum within the framework of The Global Competitiveness and Benchmarking Network and the Industry Partnership Programme for Aviation, Travel & Tourism. Professor Klaus Schwab Executive Chairman Børge Brende Managing Director, Government Relations and Constituents Engagement Robert Greenhill Managing Director, Chief Business Officer John Moavenzadeh Senior Director, Head of Mobility Industries EDITORS Jennifer Blanke, Senior Director, Lead Economist, Head of The Global Competitiveness and Benchmarking Network Thea Chiesa, Director, Head of Aviation, Travel & Tourism THE GLOBAL COMPETITIVENESS AND BENCHMARKING NETWORK Beñat Bilbao-Osorio, Associate Director, Senior Economist Ciara Browne, Associate Director Roberto Crotti, Quantitative Economist Margareta Drzeniek Hanouz, Director, Senior Economist, Head of Competitiveness Research Brindusa Fidanza, Associate Director, Environmental Initiatives Thierry Geiger, Associate Director, Economist Tania Gutknecht, Community Manager Caroline Ko, Junior Economist Cecilia Serin, Team Coordinator We thank Hope Steele for her excellent editing work and Neil Weinberg for his superb graphic design and layout. The terms country and nation as used in this report do not in all cases refer to a territorial entity that is a state as understood by international law and practice. The terms cover well-defined, geographically self-contained economic areas that may not be states but for which statistical data are maintained on a separate and independent basis. World Economic Forum Geneva Copyright © 2013 by the World Economic Forum All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, or otherwise without the prior permission of the World Economic Forum. ISBN-13: 978-92-95044-40-1 ISBN-10: 92-95044-40-1 This report is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Printed and bound in Switzerland by SRO-Kundig. The full edition of the Report, with profiles of all 140 economies as well as an interactive data platform, is available at www.weforum.org/ttcr. © 2013 World Economic Forum
  4. 4. The Travel & Tourism Competitiveness Report 2013 | iii Partner Institutes v Preface xiii by Børge Brende and Robert Greenhill, World Economic Forum Executive Summary xv by Jennifer Blanke and Thea Chiesa, World Economic Forum Part 1: Selected Issues of T&T Competitiveness 1.1 The Travel & Tourism Competitiveness 3 Index 2013: Contributing to National Growth and Employment by Jennifer Blanke, Thea Chiesa, and Roberto Crotti, World Economic Forum 1.2 How to Succeed as a Tourism 43 Destination in a Volatile World by Jürgen Ringbeck and Timm Pietsch, Booz & Company 1.3 Visa Facilitation: Stimulating Economic 49 Growth and Development through Tourism by Dirk Glaesser and John Kester, with Márcio Favilla, Sandra Carvão, Lorna Hartantyo, Birka Valentin, Lisa Fürbaß, Kate Holmes, Jacinta García, and Alberto G. Uceda, World Tourism Organization (UNWTO) 1.4 The Economic Benefits of Aviation 57 and Performance in the Travel & Tourism Competitiveness Index by Julie Perovic, International Air Transport Association (IATA) 1.5 Travel & Tourism as a Driver 63 of Employment Growth by Rochelle Turner, World Travel & Tourism Council, and Zachary Sears, Oxford Economics 1.6 Competiveness, Jobs, and Green 71 Growth: A “Glocal” Model by Geoffrey Lipman, Greenearth.travel and Victoria University Melbourne, and Terry Delacy and Paul Whitelaw, Victoria University Melbourne Part 2: Country/Economy Profiles and 79 Data Presentation 2.1 Country/Economy Profiles 81 How to Read the Country/Economy Profiles...................................83 Index of Countries/Economies.........................................................85 Country/Economy Profiles...............................................................86 2.2 Data Tables 367 How to Read the Data Tables........................................................369 Index of Data Tables......................................................................371 Data Tables...................................................................................373 Technical Notes and Sources 471 About the Authors 479 Acknowledgments 481 Contents © 2013 World Economic Forum
  5. 5. © 2013 World Economic Forum
  6. 6. The Travel & Tourism Competitiveness Report 2013 | v The World Economic Forum’s Global Benchmarking Network is pleased to acknowledge and thank the following organizations as its valued Partner Institutes, without which the realization of The Travel & Tourism Competitiveness Report 2013 would not have been feasible: Albania Institute for Contemporary Studies (ISB) Artan Hoxha, President Elira Jorgoni, Senior Expert Endrit Kapaj, Expert Algeria Centre de Recherche en Economie Appliquée pour le Développement (CREAD) Youcef Benabdallah, Assistant Professor Yassine Ferfera, Director Argentina IAE—Universidad Austral Eduardo Luis Fracchia, Professor Santiago Novoa, Project Manager Armenia Economy and Values Research Center Manuk Hergnyan, Chairman Sevak Hovhannisyan, Board Member and Senior Associate Gohar Malumyan, Research Associate Australia Australian Industry Group Colleen Dowling, Senior Research Coordinator Innes Willox, Chief Executive Austria Austrian Institute of Economic Research (WIFO) Karl Aiginger, Director Gerhard Schwarz, Coordinator, Survey Department Azerbaijan Azerbaijan Marketing Society Fuad Aliyev, Deputy Chairman Ashraf Hajiyev, Consultant Bahrain Bahrain Economic Development Board Kamal Bin Ahmed, Minister of Transportation and Acting Chief Executive of the Economic Development Board Nada Azmi, Manager, Economic Planning and Development Maryam Matter, Coordinator, Economic Planning and Development Bangladesh Centre for Policy Dialogue (CPD) Khondaker Golam Moazzem, Senior Research Fellow Kishore Kumer Basak, Research Associate Mustafizur Rahman, Executive Director Barbados Sir Arthur Lewis Institute of Social and Economic Studies, University of West Indies (UWI) Judy Whitehead, Director Belgium Vlerick Business School Priscilla Boiardi, Associate, Competence Centre Entrepreneurship, Governance and Strategy Wim Moesen, Professor Leo Sleuwaegen, Professor, Competence Centre Entrepreneurship, Governance and Strategy Benin CAPOD—Conception et Analyse de Politiques de Développement Epiphane Adjovi, Director Maria-Odile Attanasso, Deputy Coordinator Fructueux Deguenonvo, Researcher Bosnia and Herzegovina MIT Center, School of Economics and Business in Sarajevo, University of Sarajevo Zlatko Lagumdzija, Professor Zeljko Sain, Executive Director Jasmina Selimovic, Assistant Director Botswana Botswana National Productivity Centre Letsogile Batsetswe, Research Consultant and Statistician Baeti Molake, Executive Director Phumzile Thobokwe, Manager, Information and Research Services Department Brazil Fundação Dom Cabral, Bradesco Innovation Center Carlos Arruda, International Relations Director, Innovation and Competitiveness Professor Daniel Berger, Bachelor Student in Economics Fabiana Madsen, Economist and Associate Researcher Movimento Brasil Competitivo (MBC) Carolina Aichinger, Project Coordinator Erik Camarano, Chief Executive Officer Brunei Darussalam Ministry of Industry and Primary Resources Pehin Dato Yahya Bakar, Minister Normah Suria Hayati Jamil Al-Sufri, Permanent Secretary Bulgaria Center for Economic Development Adriana Daganova, Expert, International Programmes and Projects Anelia Damianova, Senior Expert Burkina Faso lnstitut Supérieure des Sciences de la Population (ISSP), University of Ouagadougou Baya Banza, Director Partner Institutes © 2013 World Economic Forum
  7. 7. vi | The Travel & Tourism Competitiveness Report 2013 Partner Institutes Burundi University Research Centre for Economic and Social Development (CURDES), National University of Burundi Banderembako Deo, Director Gilbert Niyongabo, Dean, Faculty of Economics & Management Cambodia Economic Institute of Cambodia Sok Hach, President Sokheng Sam, Researcher Cameroon Comité de Compétitivité (Competitiveness Committee) Lucien Sanzouango, Permanent Secretary Canada The Conference Board of Canada Michael R. Bloom, Vice-President, Organizational Effectiveness & Learning Douglas Watt, Associate Director Cape Verde INOVE RESEARCH—Investigação e Desenvolvimento, Lda Júlio Delgado, Partner and Senior Researcher José Mendes, Chief Executive Officer Sara França Silva, Project Manager Chad Groupe de Recherches Alternatives et de Monitoring du Projet Pétrole-Tchad-Cameroun (GRAMP-TC) Antoine Doudjidingao, Researcher Gilbert Maoundonodji, Director Celine Nénodji Mbaipeur, Programme Officer Chile Universidad Adolfo Ibáñez Fernando Larrain Aninat, Director MBA Leonidas Montes, Dean, School of Government China Institute of Economic System and Management, National Development and Reform Commission Chen Wei, Research Fellow Dong Ying, Professor Zhou Haichun, Deputy Director and Professor China Center for Economic Statistics Research, Tianjin University of Finance and Economics Bojuan Zhao, Professor Fan Yang, Professor Jian Wang, Associate Professor Hongye Xiao, Professor Lu Dong, Professor Colombia National Planning Department Sara Patricia Rivera, Advisor John Rodríguez, Coordinator, Competitiveness Observatory Javier Villarreal, Enterprise Development Director Colombian Private Council on Competitiveness Rosario Córdoba, President Marco Llinás, Vicepresident Côte d’Ivoire Chambre de Commerce et d’Industrie de Côte d’Ivoire Jean-Louis Billon, President Mamadou Sarr, Director General Croatia National Competitiveness Council Jadranka Gable, Advisor Kresimir Jurlin, Research Fellow Cyprus The European University Bambos Papageorgiou, Head of Socioeconomic and Academic Research cdbbank—The Cyprus Development Bank Maria Markidou-Georgiadou, Manager, Business Development and Special Projects Czech Republic CMC Graduate School of Business Tomas Janca, Executive Director Denmark Danish Technological Institute, Center for Policy and Business Development Hanne Shapiro, Center Manager Ecuador ESPAE Graduate School of Management, Escuela Superior Politécnica del Litoral (ESPOL) Elizabeth Arteaga, Project Assistant Virginia Lasio, Director Sara Wong, Professor Egypt The Egyptian Center for Economic Studies (ECES) Iman Al-Ayouty, Senior Economist Omneia Helmy, Acting Executive Director and Director of Research Estonia Estonian Institute of Economic Research Evelin Ahermaa, Head of Economic Research Sector Marje Josing, Director Estonian Development Fund Kitty Kubo, Head of Foresight Ott Pärna, Chief Executive Officer Ethiopia African Institute of Management, Development and Governance Zebenay Kifle, General Manager Tegenge Teka, Senior Expert Finland ETLA—The Research Institute of the Finnish Economy Markku Kotilainen, Research Director Petri Rouvinen, Research Director Pekka Ylä-Anttila, Managing Director France HEC School of Management, Paris Bertrand Moingeon, Professor and Deputy Dean Bernard Ramanantsoa, Professor and Dean Gabon Confédération Patronale Gabonaise Regis Loussou Kiki, General Secretary Gina Eyama Ondo, Assistant General Secretary Henri Claude Oyima, President Gambia, The Gambia Economic and Social Development Research Institute (GESDRI) Makaireh A. Njie, Director Georgia Business Initiative for Reforms in Georgia Tamara Janashia, Executive Director Giga Makharadze, Founding Member of the Board of Directors Mamuka Tsereteli, Founding Member of the Board of Directors © 2013 World Economic Forum
  8. 8. The Travel & Tourism Competitiveness Report 2013 | vii Partner Institutes Germany WHU—Otto Beisheim School of Management Ralf Fendel, Professor of Monetary Economics Michael Frenkel, Professor, Chair of Macroeconomics and International Economics Ghana Association of Ghana Industries (AGI) Patricia Addy, Projects Officer Nana Owusu-Afari, President Seth Twum-Akwaboah, Executive Director Greece SEV Hellenic Federation of Enterprises Michael Mitsopoulos, Senior Advisor, Entrepreneurship Thanasis Printsipas, Economist, Entrepreneurship Guatemala FUNDESA Felipe Bosch G., President of the Board of Directors Pablo Schneider, Economic Director Juan Carlos Zapata, General Manager Guinea Confédération Patronale des Entreprises de Guinée Mohamed Bénogo Conde, Secretary-General Guyana Institute of Development Studies, University of Guyana Karen Pratt, Research Associate Clive Thomas, Director Haiti Group Croissance SA Pierre Lenz Dominique, Coordinator, Survey Department Kesner Pharel, Chief Executive Officer and Chairman Hong Kong SAR Hong Kong General Chamber of Commerce David O’Rear, Chief Economist Federation of Hong Kong Industries Alexandra Poon, Director The Chinese General Chamber of Commerce Hungary KOPINT-TÁRKI Economic Research Ltd. Éva Palócz, Chief Executive Officer Peter Vakhal, Project Manager Iceland Innovation Center Iceland Ardis Armannsdottir, Marketing Manager Karl Fridriksson, Managing Director of Human Resources and Marketing Thorsteinn I. Sigfusson, Director India Confederation of Indian Industry (CII) Chandrajit Banerjee, Director General Marut Sengupta, Deputy Director General Gantakolla Srivastava, Head, Financial Services Indonesia Center for Industry, SME & Business Competition Studies, University of Trisakti Tulus Tambunan, Professor and Director Iran, Islamic Republic of The Center for Economic Studies and Surveys (CESS), Iran Chamber of Commerce, Industries, Mines and Agriculture Mohammad Janati Fard, Research Associate Hamed Nikraftar, Project Manager Farnaz Safdari, Research Associate Ireland Institute for Business Development and Competitiveness School of Economics, University College Cork Justin Doran, Principal Associate Eleanor Doyle, Director Catherine Kavanagh, Principal Associate Forfás, Economic Analysis and Competitiveness Department Adrian Devitt, Manager Conor Hand, Economist Israel Manufacturers’ Association of Israel (MAI) Dan Catarivas, Director Amir Hayek, Managing Director Zvi Oren, President Italy SDA Bocconi School of Management Secchi Carlo, Full Professor of Economic Policy, Bocconi University Paola Dubini, Associate Professor, Bocconi University Francesco A. Saviozzi, SDA Professor, Strategic and Entrepreneurial Management Department Jamaica Mona School of Business (MSB), The University of the West Indies Patricia Douce, Project Administrator Evan Duggan, Executive Director and Professor William Lawrence, Director, Professional Services Unit Japan Keio University Yoko Ishikura, Professor, Graduate School of Media Design Heizo Takenaka, Director, Global Security Research Institute Jiro Tamura, Professor of Law, Keio University Keizai Doyukai (Japan Association of Corporate Executives) Kiyohiko Ito, Managing Director, Keizai Doyukai Jordan Ministry of Planning & International Cooperation Jordan National Competitiveness Team Kawther Al-Zou’bi, Head of Competitiveness Division Basma Arabiyat, Researcher Mukhallad Omari, Director of Policies and Studies Department Kazakhstan National Analytical Centre Diana Tamabayeva, Project Manager Vladislav Yezhov, Chairman Kenya Institute for Development Studies, University of Nairobi Mohamud Jama, Director and Associate Research Professor Paul Kamau, Senior Research Fellow Dorothy McCormick, Research Professor Korea, Republic of College of Business School, Korea Advanced Institute of Science and Technology KAIST Byungtae Lee, Acting Dean Soung-Hie Kim, Associate Dean and Professor Jinyung Cha, Assistant Director, Exchange Programme Korea Development Institute Joohee Cho, Senior Research Associate Yongsoo Lee, Head, Policy Survey Unit Kuwait Kuwait National Competitiveness Committee Adel Al-Husainan, Committee Member Fahed Al-Rashed, Committee Chairman Sayer Al-Sayer, Committee Member © 2013 World Economic Forum
  9. 9. viii | The Travel & Tourism Competitiveness Report 2013 Partner Institutes Kyrgyz Republic Economic Policy Institute “Bishkek Consensus” Lola Abduhametova, Program Coordinator Marat Tazabekov, Chairman Latvia Stockholm School of Economics in Riga Karlis Kreslins, EMBA Programme Director Anders Paalzow, Rector Lebanon Bader Young Entrepreneurs Program Antoine Abou-Samra, Managing Director Farah Shamas, Program Coordinator Lesotho Private Sector Foundation of Lesotho O.S.M. Moosa, President Thabo Qhesi, Chief Executive Officer Nteboheleng Thaele, Researcher Libya Libya Development Policy Center Yusser Al-Gayed, Project Director Ahmed Jehani, Chairman Mohamed Wefati, Director Lithuania Statistics Lithuania Ona Grigiene, Deputy Head, Knowledge Economy and Special Surveys Statistics Division Vilija Lapeniene, Director General Gediminas Samuolis, Head, Knowledge Economy and Special Surveys Statistics Division Luxembourg Luxembourg Chamber of Commerce Christel Chatelain, Research Analyst Stephanie Musialski, Research Analyst Carlo Thelen, Chief Economist, Member of the Managing Board Macedonia, FYR National Entrepreneurship and Competitiveness Council (NECC) Mirjana Apostolova, President of the Assembly Dejan Janevski, Project Coordinator Madagascar Centre of Economic Studies, University of Antananarivo Ravelomanana Mamy Raoul, Director Razato Rarijaona Simon, Executive Secretary Malawi Malawi Confederation of Chambers of Commerce and Industry Hope Chavula, Public Private Dialogue Manager Chancellor L. Kaferapanjira, Chief Executive Officer Malaysia Institute of Strategic and International Studies (ISIS) Jorah Ramlan, Senior Analyst, Economics Steven C.M. Wong, Senior Director, Economics Mahani Zainal Abidin, Chief Executive Malaysia Productivity Corporation (MPC) Mohd Razali Hussain, Director General Lee Saw Hoon, Senior Director Mali Groupe de Recherche en Economie Appliquée et Théorique (GREAT) Massa Coulibaly, Executive Director Malta Competitive Malta—Foundation for National Competitiveness Margrith Lutschg-Emmenegger, Vice President Adrian Said, Chief Coordinator Caroline Sciortino, Research Coordinator Mauritania Centre d’Information Mauritanien pour le Développement Economique et Technique (CIMDET/CCIAM) Lô Abdoul, Consultant and Analyst Mehla Mint Ahmed, Director Habib Sy, Administrative Agent and Analyst Mauritius Board of Investment of Mauritius Nirmala Jeetah, Director, Planning and Policy Ken Poonoosamy, Managing Director Joint Economic Council Raj Makoond, Director Mexico Center for Intellectual Capital and Competitiveness Erika Ruiz Manzur, Executive Director René Villarreal Arrambide, President and Chief Executive Officer Rodrigo David Villarreal Ramos, Director Instituto Mexicano para la Competitividad (IMCO) Priscila Garcia, Researcher Manuel Molano, Deputy General Director Juan E. Pardinas, General Director Ministry of the Economy Jose Antonio Torre, Undersecretary for Competitiveness and Standardization Enrique Perret Erhard, Technical Secretary for Competitiveness Narciso Suarez, Research Director, Technical Secretary for Competitiveness Moldova Academy of Economic Studies of Moldova (AESM) Grigore Belostecinic, Rector Centre for Economic Research (CER) Corneliu Gutu, Director Mongolia Open Society Forum (OSF) Munkhsoyol Baatarjav, Manager of Economic Policy Erdenejargal Perenlei, Executive Director Montenegro Institute for Strategic Studies and Prognoses (ISSP) Maja Drakic, Project Manager Petar Ivanovic, Chief Executive Officer Veselin Vukotic, President Morocco Comité National de l’Environnement des Affaires Seloua Benmbarek, Head of Mission Mozambique EconPolicy Research Group, Lda. Peter Coughlin, Director Donaldo Miguel Soares, Researcher Ema Marta Soares, Assistant Namibia Institute for Public Policy Research (IPPR) Graham Hopwood, Executive Director © 2013 World Economic Forum
  10. 10. The Travel & Tourism Competitiveness Report 2013 | ix Partner Institutes Nepal Centre for Economic Development and Administration (CEDA) Ramesh Chandra Chitrakar, Professor, Country Coordinator and Project Director Mahendra Raj Joshi, Member Hari Dhoj Pant, Officiating Executive Director, Advisor, Survey project Netherlands INSCOPE: Research for Innovation, Erasmus University Rotterdam Frans A. J. Van den Bosch, Professor Henk W. Volberda, Director and Professor New Zealand The New Zealand Initiative Catherine Harland, Research Fellow Oliver Hartwich, Executive Director Nigeria Nigerian Economic Summit Group (NESG) Frank Nweke Jr., Director General Chris Okpoko, Associate Director, Research Foluso Phillips, Chairman Norway BI Norwegian Business School Eskil Goldeng, Researcher Torger Reve, Professor Oman The International Research Foundation Salem Ben Nasser Al-Ismaily, Chairman Public Authority for Investment Promotion and Export Development (PAIPED) Mehdi Ali Juma, Expert for Economic Research Pakistan Mishal Pakistan Puruesh Chaudhary, Director Content Amir Jahangir, Chief Executive Officer Paraguay Centro de Análisis y Difusión de Economia Paraguaya (CADEP) Dionisio Borda, Research Member Fernando Masi, Director María Belén Servín, Research Member Peru Centro de Desarrollo Industrial (CDI), Sociedad Nacional de Industrias Néstor Asto, Project Director Luis Tenorio, Executive Director Philippines Makati Business Club (MBC) Michael B. Mundo, Chief Economist Marc P. Opulencia, Deputy Director Peter Angelo V. Perfecto, Executive Director Management Association of the Philippines (MAP) Arnold P. Salvador, Executive Director Poland Economic Institute, National Bank of Poland Piotr Boguszewski, Advisor Jarosław T. Jakubik, Deputy Director Portugal PROFORUM, Associação para o Desenvolvimento da Engenharia Ilídio António de Ayala Serôdio, Vice President of the Board of Directors Fórum de Administradores de Empresas (FAE) Paulo Bandeira, General Director Pedro do Carmo Costa, Member of the Board of Directors Esmeralda Dourado, President of the Board of Directors Puerto Rico Puerto Rico 2000, Inc. Ivan Puig, President Instituto de Competitividad Internacional, Universidad Interamericana de Puerto Rico Francisco Montalvo, Project Coordinator Qatar Qatari Businessmen Association (QBA) Sarah Abdallah, Deputy General Manager Issa Abdul Salam Abu Issa, Secretary-General Social and Economic Survey Research Institute (SESRI) Hanan Abdul Ibrahim, Associate Director Darwish Al Emadi, Director Romania SC VBD Alliance Consulting Srl Irina Ion, Program Coordinator Rolan Orzan, General Director Russian Federation Bauman Innovation & Eurasia Competitiveness Institute Katerina Marandi, Programme Manager Alexey Prazdnichnykh, Principal and Managing Director Stockholm School of Economics, Russia Igor Dukeov, Area Principal Carl F. Fey, Associate Dean of Research Rwanda Private Sector Federation (PSF) Hannington Namara, Chief Executive Officer Andrew O. Rwigyema, Head of Research and Policy Saudi Arabia National Competitiveness Center (NCC) Awwad Al-Awwad, President Khaldon Mahasen, Vice President Senegal Centre de Recherches Economiques Appliquées (CREA), University of Dakar Diop Ibrahima Thione, Director Serbia Foundation for the Advancement of Economics (FREN) Mihail Arandarenko, Director Aleksandar Radivojevic, Project Coordinator Bojan Ristic, Researcher Seychelles Plutus Auditing & Accounting Services Nicolas Boulle, Partner Marco L. Francis, Partner Singapore Economic Development Board Anna Chan, Assistant Managing Director, Planning & Policy Cheng Wai San, Head, Research & Statistics Unit Teo Xinyu, Executive, Research & Statistics Unit Slovak Republic Business Alliance of Slovakia (PAS) Robert Kicina, Executive Director © 2013 World Economic Forum
  11. 11. x | The Travel & Tourism Competitiveness Report 2013 Partner Institutes Slovenia Institute for Economic Research Peter Stanovnik, Professor Sonja Uršic, Senior Research Assistant University of Ljubljana, Faculty of Economics Mateja Drnovšek, Professor Aleš Vahcic, Professor South Africa Business Leadership South Africa Friede Dowie, Director Thero Setiloane, Chief Executive Officer Business Unity South Africa Nomaxabiso Majokweni, Chief Executive Officer Joan Stott, Executive Director, Economic Policy Spain IESE Business School, International Center for Competitiveness María Luisa Blázquez, Research Associate Antoni Subirà, Professor Sri Lanka Institute of Policy Studies of Sri Lanka (IPS) Ayodya Galappattige, Research Officer Dilani Hirimuthugodage, Research Officer Saman Kelegama, Executive Director Suriname Suriname Trade & Industry Association (VSB) Helen Doelwijt, Executive Secretary Rene van Essen, Director Dayenne Wielingen Verwey, Economic Policy Officer Swaziland Federation of Swaziland Employers and Chamber of Commerce Mduduzi Lokotfwako, Research Analyst Zodwa Mabuza, Chief Executive Officer Nyakwesi Motsa, Administration & Finance Manager Sweden International University of Entrepreneurship and Technology Niclas Adler, President Switzerland University of St. Gallen, Executive School of Management, Technology and Law (ES-HSG) Rubén Rodriguez Startz, Head of Project Tobias Trütsch, Communications Manager Taiwan, China Council for Economic Planning and Development, Executive Yuan Hung, J. B., Director, Economic Research Department Shieh, Chung Chung, Researcher, Economic Research Department Wu, Ming-Ji, Deputy Minister Tajikistan The Center for Sociological Research “Zerkalo” Rahima Ashrapova, Assistant Researcher Qahramon Baqoev, Director Gulnora Beknazarova, Researcher Tanzania Research on Poverty Alleviation (REPOA) Cornel Jahari, Assistant Researcher Johansein Rutaihwa, Commissioned Researcher Samuel Wangwe, Professor and Executive Director Thailand Sasin Graduate Institute of Business Administration, Chulalongkorn University Pongsak Hoontrakul, Senior Research Fellow Narudee Kiengsiri, President of Sasin Alumni Association Toemsakdi Krishnamra, Director of Sasin Thailand Development Research Institute (TDRI) Somchai Jitsuchon, Research Director Chalongphob Sussangkarn, Distinguished Fellow Yos Vajragupta, Senior Researcher Timor-Leste East Timor Development Agency (ETDA) Jose Barreto, Survey Manager Palmira Pires, Director Chambers of Commerce and Industry of Timor-Leste Kathleen Fon Ha Tchong Goncalves, Vice-President Trinidad and Tobago Arthur Lok Jack Graduate School of Business Miguel Carillo, Executive Director and Professor of Strategy Nirmala Harrylal, Director, Internationalisation and Institutional Relations Centre The Competitiveness Company Rolph Balgobin, Chairman Tunisia Institut Arabe des Chefs d’Entreprises Ahmed Bouzguenda, President Majdi Hassen, Executive Counsellor Turkey TUSIAD Sabanci University Competitiveness Forum Izak Atiyas, Director Selcuk Karaata, Vice Director Sezen Ugurlu, Project Specialist Uganda Kabano Research and Development Centre Robert Apunyo, Program Manager Delius Asiimwe, Executive Director Francis Mukuya, Research Associate Ukraine CASE Ukraine, Center for Social and Economic Research Dmytro Boyarchuk, Executive Director Vladimir Dubrovskiy, Leading Economist United Arab Emirates Abu Dhabi Department of Economic Development H.E. Mohammed Omar Abdulla, Undersecretary Dubai Economic Council H.E. Hani Al Hamly, Secretary General Institute for Social and Economic Research (ISER), Zayed University Mouawiya Alawad, Director Emirates Competitiveness Council H.E. Abdulla Nasser Lootah, Secretary General United Kingdom LSE Enterprise Ltd, London School of Economics and Political Science Adam Austerfield, Director of Projects Niccolo Durazzi, Project Manager Robyn Klingler Vidra, Researcher Uruguay Universidad ORT Uruguay Isidoro Hodara, Professor © 2013 World Economic Forum
  12. 12. The Travel & Tourism Competitiveness Report 2013 | xi Partner Institutes Venezuela CONAPRI—The Venezuelan Council for Investment Promotion Litsay Guerrero, Economic Affairs and Investor Services Manager Eduardo Porcarelli, Executive Director Vietnam Ho Chi Minh City Institute for Development Studies (HIDS) Nguyen Trong Hoa, Professor and President Du Phuoc Tan, Head of Department Trieu Thanh Son, Researcher Yemen Yemeni Businessmen Club (YBC) Mohammed Esmail Hamanah, Executive Manager Fathi Abdulwasa Hayel Saeed, Chairman Moneera Abdo Othman, Project Coordinator MARcon Marketing Consulting Margret Arning, Managing Director Zambia Institute of Economic and Social Research (INESOR), University of Zambia Patricia Funjika, Research Fellow Jolly Kamwanga, Senior Research Fellow and Project Coordinator Mubiana Macwan’gi, Director and Professor Zimbabwe Graduate School of Management, University of Zimbabwe A. M. Hawkins, Professor Bolivia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, Nicaragua, Panama INCAE Business School, Latin American Center for Competitiveness and Sustainable Development (CLACDS) Ronald Arce, Researcher Arturo Condo, Rector Marlene de Estrella, Director of External Relations Lawrence Pratt, Director Liberia and Sierra Leone FJP Development and Management Consultants Omodele R. N. Jones, Chief Executive Officer © 2013 World Economic Forum
  13. 13. © 2013 World Economic Forum
  14. 14. The Travel & Tourism Competitiveness Report 2013 | xiii The World Economic Forum has, for the past seven years, engaged key industry and thought leaders through its Aviation, Travel & Tourism Industry Partnership Programme, along with its Global Agenda Council on New Models for Travel & Tourism, to carry out an in-depth analysis of the T&T competitiveness of economies around the world. The resulting Travel & Tourism Competitiveness Report provides a platform for multi-stakeholder dialogue to ensure the development of strong and sustainable T&T industries capable of contributing effectively to international economic development. The theme of this year’s Report, “Reducing Barriers to Economic Growth and Job Creation,” reflects the importance of the sector for this purpose. Encouraging the development of the Travel & Tourism (T&T) sector is all the more important today given its important role in job creation, at a time when many countries are suffering from high unemployment. The sector already accounts for 9 percent of GDP, a total of US$6 trillion, and it provides 120 million direct jobs and another 125 million indirect jobs in related industries. This means that the industry now accounts for one in eleven jobs on the planet, a number that could even rise to one in ten jobs by 2022, according to the World Travel & Tourism Council. This edition of the Report comes at an uncertain time for the T&T sector. Although the global economy is showing signs of fragile recovery, the world is becoming increasingly complex and interconnected. In this context, it is notable that the T&T sector has remained remarkably resilient in a number of ways. The number of travelers has increased consistently over the past year, notwithstanding the difficult economic climate and shrinking budgets. Indeed, the UNWTO reports that international tourist arrivals grew by 4 percent in 2012, and forecasts that they will continue to increase by 3 percent to 4 percent in 2013. Although this trend is primarily driven by increasing demand from the emerging-market middle class, the picture has also been brightening for many developed economies. The industry has responded to the changing environment with a number of structural adjustments. Indeed, 2012 witnessed a number of alliances, mergers, and strategic investments both in the aviation industry and in online travel services. Resilience has also been demonstrated in the way that some aviation companies responded to erratic fuel prices by exploring new business models and acquiring energy assets. Additionally, industry players have made commitments to a low-carbon economy through several initiatives aimed at optimizing operations, retrofitting, recycling, and preserving the environment. Yet despite these many positive developments, the need for greater openness remains one of the major trends impacting the T&T sector, especially with regard to the freer movement of people. The importance of efforts in this area has been highlighted specifically by the G20 Los Cabos communiqué in June 2012, in which the group recognized the importance of tourism “as a vehicle for job creation, economic growth and development” and furthermore committed to “work towards developing travel facilitation initiatives in support of job creation, quality work, poverty reduction and global growth.” At the core of the Report is the fifth edition of the Travel & Tourism Competitiveness Index (TTCI). The aim of the TTCI, which covers a record 140 economies this year, is to provide a comprehensive strategic tool for measuring the “factors and policies that make it attractive to develop the T&T sector in different countries.” By providing detailed assessments of the T&T environments of countries worldwide, the results can be used by all stakeholders to work together to improve the industry’s competitiveness in their national economies, thereby contributing to national growth and prosperity. It also allows countries to track their progress over time in the various areas measured. The full Report is downloadable from www.weforum. org/ttcr; this contains detailed profiles for each of the 140 economies featured in the study, as well as an extensive section of data tables with global rankings covering over 75 indicators included in the TTCI. In addition, it includes insightful contributions from a number of industry experts. These chapters explore issues such as how visa facilitation can play a relevant role in stimulating economic growth, the importance of policymakers leveraging local competitive advantages to thrive in a volatile environment, the impact of the tourism sector on employment creation, how the connectivity that the Preface BØRGE BRENDE AND ROBERT GREENHILL World Economic Forum © 2013 World Economic Forum
  15. 15. xiv | The Travel & Tourism Competitiveness Report 2013 Preface aviation sector creates sustains economic development, and the essential role of green growth in enhancing the resilience of the sector. The Travel & Tourism Competitiveness Report 2013 could not have been put together without the distinguished thinkers who have shared with us their knowledge and experience. We are grateful to our Strategic Design Partner Booz & Company, and our Data Partners Deloitte, the International Air Transport Association (IATA), the International Union for Conservation of Nature (IUCN), the World Tourism Organization (UNWTO), and the World Travel & Tourism Council (WTTC) for helping us to design and develop the TTCI and for providing much of the industry-relevant data used in its calculation. We thank our Industry Partners in this Report—namely Airbus/EADS, BAE Systems, Bahrain Economic Development Board, Bombardier, Delta, Deutsche Lufthansa/Swiss, Embraer, Etihad Airways, Jet Airways, Hilton, Lockheed Martin, Marriott, Safran, Starwood Hotels & Resorts, and VISA—for their support in this important venture. We also wish to thank the editors of the Report, Jennifer Blanke and Thea Chiesa, as well as the project manager, Roberto Crotti, for their energy and their commitment to the project. Appreciation goes to other members of the competitiveness team: Beñat Bilbao-Osorio, Ciara Browne, Margareta Drzeniek Hanouz, Thierry Geiger, Tania Gutknecht, Caroline Ko, and Cecilia Serin. Finally, we would like to convey our sincere gratitude to our network of 150 Partner Institutes worldwide, without whose hard work the annual administration of the Executive Opinion Survey and this Report would not be possible. © 2013 World Economic Forum
  16. 16. Executive Summary The Travel & Tourism Competitiveness Report 2013 | xv Executive Summary JENNIFER BLANKE AND THEA CHIESA World Economic Forum The Travel & Tourism (T&T) industry has managed to remain relatively resilient over the recent year despite the uncertain global economic outlook, which has been characterized by fragile global economic growth, macroeconomic tensions, and high unemployment in many countries. Indeed, the sector has benefitted from the continuing globalization process: travel has been increasing in mature markets and, particularly, has been driven by the rising purchasing power of the growing middle class in many developing economies. In such a context, Travel & Tourism has continued to be a critical sector for economic development and for sustaining employment, in both advanced and developing economies. A strong T&T sector contributes in many ways to development and the economy. It makes both direct contributions, by raising the national income and improving the balance of payments, and indirect contributions, via its multiplier effect and by providing the basis for connecting countries, through hard and soft infrastructure—attributes that are critical for a country’s more general economic competitiveness. Although developing the T&T sector provides many benefits, numerous obstacles at the national level continue to hinder its development. For this reason, seven years ago the World Economic Forum, together with its Industry and Data Partners, embarked on a multi-year research effort aimed at exploring various issues related to the T&T competitiveness of countries around the world. This year’s Report is published under the theme “Reducing Barriers to Economic Growth and Job Creation,” which reflects the forward-looking attitude of the sector as it aims to ensure strong growth going into the future. THE TRAVEL & TOURISM COMPETITIVENESS INDEX The Travel & Tourism Competitiveness Index (TTCI) aims to measure the factors and policies that make it attractive to develop the T&T sector in different countries. The Index was developed in close collaboration with our Strategic Design Partner Booz & Company and our Data Partners Deloitte, the International Air Transport Association (IATA), the International Union for Conservation of Nature (IUCN), the World Tourism Organization (UNWTO), and the World Travel & Tourism Council (WTTC). We have also received important feedback from a number of key companies that are Industry Partners in the effort, namely Airbus/EADS, BAE Systems, the Bahrain Economic Development Board, Bombardier, Delta, Deutsche Lufthansa/Swiss, Embraer, Etihad Airways, Hilton, Jet Airways, Lockheed Martin, Marriott, Safran, Starwood Hotels & Resorts, and VISA. The TTCI is based on three broad categories of variables that facilitate or drive T&T competitiveness. These categories are summarized into the three subindexes of the Index: (1) the T&T regulatory framework subindex; (2) the T&T business environment and infrastructure subindex; and (3) the T&T human, cultural, and natural resources subindex. The first subindex captures those elements that are policy related and generally under the purview of the government; the second subindex captures elements of the business environment and the “hard” infrastructure of each economy; and the third subindex captures the “softer” human, cultural, and natural elements of each country’s resource endowments. Each of these three subindexes is composed in turn by a number of pillars of T&T competitiveness, of which there are 14 in all. These are: 1. Policy rules and regulations 2. Environmental sustainability 3. Safety and security 4. Health and hygiene 5. Prioritization of Travel & Tourism 6. Air transport infrastructure 7. Ground transport infrastructure 8. Tourism infrastructure 9. ICT infrastructure 10. Price competitiveness in the T&T industry 11. Human resources 12. Affinity for Travel & Tourism 13. Natural resources 14. Cultural resources Each of the pillars is, in turn, made up of a number of individual variables. The dataset includes both survey data from the World Economic Forum’s annual Executive Opinion Survey (the Survey) and quantitative data from publicly available sources, international organizations, and T&T institutions and experts (for example, IATA, the © 2013 World Economic Forum
  17. 17. Executive Summary xvi | The Travel & Tourism Competitiveness Report 2013 Table 1: The Travel & Tourism Competitiveness Index 2013 and 2011 comparison 2013 2011 Country/Economy Rank/140 Score Rank/139 Switzerland 1 5.66 1 Germany 2 5.39 2 Austria 3 5.39 4 Spain 4 5.38 8 United Kingdom 5 5.38 7 United States 6 5.32 6 France 7 5.31 3 Canada 8 5.28 9 Sweden 9 5.24 5 Singapore 10 5.23 10 Australia 11 5.17 13 New Zealand 12 5.17 19 Netherlands 13 5.14 14 Japan 14 5.13 22 Hong Kong SAR 15 5.11 12 Iceland 16 5.10 11 Finland 17 5.10 17 Belgium 18 5.04 23 Ireland 19 5.01 21 Portugal 20 5.01 18 Denmark 21 4.98 16 Norway 22 4.95 20 Luxembourg 23 4.93 15 Malta 24 4.92 26 Korea, Rep. 25 4.91 32 Italy 26 4.90 27 Barbados 27 4.88 28 United Arab Emirates 28 4.86 30 Cyprus 29 4.84 24 Estonia 30 4.82 25 Czech Republic 31 4.78 31 Greece 32 4.75 29 Taiwan, China 33 4.71 37 Malaysia 34 4.70 35 Croatia 35 4.59 34 Slovenia 36 4.58 33 Panama 37 4.54 56 Seychelles 38 4.51 n/a Hungary 39 4.51 38 Montenegro 40 4.50 36 Qatar 41 4.49 42 Poland 42 4.47 49 Thailand 43 4.47 41 Mexico 44 4.46 43 China 45 4.45 39 Turkey 46 4.44 50 Costa Rica 47 4.44 44 Latvia 48 4.43 51 Lithuania 49 4.39 55 Bulgaria 50 4.38 48 Brazil 51 4.37 52 Puerto Rico 52 4.36 45 Israel 53 4.34 46 Slovak Republic 54 4.32 54 Bahrain 55 4.30 40 Chile 56 4.29 57 Oman 57 4.29 61 Mauritius 58 4.28 53 Uruguay 59 4.23 58 Jordan 60 4.18 64 Argentina 61 4.17 60 Saudi Arabia 62 4.17 62 Russian Federation 63 4.16 59 South Africa 64 4.13 66 India 65 4.11 68 Georgia 66 4.10 73 Jamaica 67 4.08 65 Romania 68 4.04 63 Lebanon 69 4.04 70 Indonesia 70 4.03 74 2013 2011 Country/Economy Rank/140 Score Rank/139 Morocco 71 4.03 78 Brunei Darussalam 72 4.01 67 Peru 73 4.00 69 Sri Lanka 74 3.99 81 Macedonia, FYR 75 3.98 76 Ukraine 76 3.98 85 Albania 77 3.97 71 Azerbaijan 78 3.97 83 Armenia 79 3.96 90 Vietnam 80 3.95 80 Ecuador 81 3.93 87 Philippines 82 3.93 94 Trinidad and Tobago 83 3.93 79 Colombia 84 3.90 77 Egypt 85 3.88 75 Dominican Republic 86 3.88 72 Cape Verde 87 3.87 89 Kazakhstan 88 3.82 93 Serbia 89 3.78 82 Bosnia and Herzegovina 90 3.78 97 Namibia 91 3.77 84 Gambia, The 92 3.73 92 Honduras 93 3.72 88 Botswana 94 3.71 91 Nicaragua 95 3.67 100 Kenya 96 3.66 103 Guatemala 97 3.65 86 Iran, Islamic Rep. 98 3.64 114 Mongolia 99 3.63 101 Suriname 100 3.63 n/a Kuwait 101 3.61 95 Moldova 102 3.60 99 Guyana 103 3.60 98 El Salvador 104 3.59 96 Rwanda 105 3.56 102 Cambodia 106 3.56 109 Senegal 107 3.49 104 Zambia 108 3.46 111 Tanzania 109 3.46 110 Bolivia 110 3.46 117 Kyrgyz Republic 111 3.45 107 Nepal 112 3.42 112 Venezuela 113 3.41 106 Tajikistan 114 3.41 118 Paraguay 115 3.39 123 Uganda 116 3.39 115 Ghana 117 3.38 108 Zimbabwe 118 3.33 119 Swaziland 119 3.31 116 Ethiopia 120 3.29 122 Cameroon 121 3.27 126 Pakistan 122 3.25 125 Bangladesh 123 3.24 129 Malawi 124 3.22 121 Mozambique 125 3.17 128 Côte d’Ivoire 126 3.15 131 Nigeria 127 3.14 130 Burkina Faso 128 3.12 132 Mali 129 3.11 133 Benin 130 3.09 120 Madagascar 131 3.09 127 Algeria 132 3.07 113 Yemen 133 2.96 n/a Mauritania 134 2.91 136 Lesotho 135 2.89 135 Guinea 136 2.88 n/a Sierra Leone 137 2.87 n/a Burundi 138 2.82 137 Chad 139 2.61 139 Haiti 140 2.59 n/a © 2013 World Economic Forum
  18. 18. Executive Summary The Travel & Tourism Competitiveness Report 2013 | xvii IUCN, the UNWTO, WTTC, UNCTAD, and UNESCO). The Survey is carried out among chief executive officers and top business leaders in all economies covered by our research; these are the people making the investment decisions in their respective economies. The Survey provides unique data on many qualitative institutional and business environment issues, as well as specific issues related to the T&T industry and the quality of the natural environment. The details of the composition of the TTCI are shown in Appendix A of Chapter 1.1; detailed rankings and scores of this year’s Index are found in Appendix B of that chapter. THE TRAVEL & TOURISM COMPETITIVENESS INDEX RANKINGS 2013 Table 1 shows the overall rankings of the 140 economies assessed in this edition TTCI, comparing this year’s rankings with those from the 2011 edition of the Report,. Switzerland maintains its top position in the rankings, which it has retained for five consecutive editions, since the very first Travel & Tourism Competitiveness Report. Tables 2–6 present the rankings in a regional context, grouping economies into the following five regional groups: Europe, the Americas, Asia Pacific (including Central Asia), the Middle East and North Africa, and sub-Saharan Africa. We discuss below a selection of countries from each region to provide a sense of the results and how they are interpreted at the national level. More countries are discussed in detail in Chapter 1.1. Europe In line with statistics on international tourist arrivals, Table 1 shows that Europe remains the leading region for Travel & Tourism competitiveness, with all of the top five places taken by European countries. Likewise, 13 of the top 20 countries are from the region. Table 2 shows the rankings for European countries only, with the first column showing the rank within the region, the second column showing the overall rank out of all 140 economies included in the Index this year, and the third column showing the score. As the table shows, Switzerland is ranked 1st out of all countries in the 2013 TTCI, a position it has held since the first edition of this Report in 2007. Germany, Austria, Spain, and the United Kingdom complete the top five, while France and Sweden are among the top 10 overall. Switzerland continues to lead the rankings, performing well on almost all aspects of the Index. Switzerland’s infrastructure, especially ground transport (3rd), is among the best in the world. The country also boasts top marks for its hotels and other tourism-specific facilities, with excellent staff thanks to the availability of qualified labor to work in the industry (ranked 2nd)— perhaps not surprising in a country that holds many of the world’s best hotel management schools. Switzerland also attracts tourists because of its rich and well- managed natural resources. A large percentage of the country’s land area is protected, environmental regulation is among the most stringent (3rd), and the T&T industry is considered to be developed in a sustainable way (7th). These good environmental conditions, combined with the high safety and security of the country (2nd), contribute to its solid T&T competitiveness. Switzerland is not only a strong leisure tourism destination but also an important business travel hub, with many international fairs and exhibitions held in the country each year, driving its showing on the cultural resources pillar (6th). Switzerland’s strong performance in all these areas enables the country to somewhat make up for its lack of price competitiveness (139th), which, together with a fairly restrained international visa policy, does indeed limit the number of arrivals. Germany ranks 2nd in Europe and out of all countries in the TTCI. Similar to Switzerland, its infrastructure is among the best in the world: it is ranked 6th for ground transport infrastructure and 7th for air transport infrastructure, facilitating connections both within the country and internationally. Germany also has abundant cultural resources (ranked 5th worldwide for its many World Heritage cultural sites) and is host to almost 600 international fairs and exhibition per year (2nd), while hotel prices are relatively competitive (55th). In addition, Germany makes great efforts to develop in a sustainable way (4th), with the world’s most stringent environmental regulations—which are also among the best-enforced— and the strong support of international environmental efforts, as demonstrated through its ratification of many international environmental treaties. Austria ranks 3rd, improving by one position since 2011. Its strong performance is driven by factors such as tourism infrastructure, in which it ties for 1st place with Italy; a welcoming attitude toward visitors; a very safe and secure environment (7th); and, most importantly, its rich cultural resources. Austria hosts nine World Heritage cultural sites, has excellent creative industries, and attracts many travelers with several fairs and exhibitions organized every year. The country’s tourism industry is also being developed in a sustainable way (10th), with some of the most stringent (4th) and well-enforced (7th) environmental regulations in the world, driving its overall positive performance on environmental sustainability (ranked 6th). Spain is the country among the top 10 that sees the most improvement since 2011: moving up four places since the last assessment, it is now ranked 4th. Spain continues to lead in cultural resources, ranking 1st this year in this area because of its extremely numerous World Heritage sites (2nd) and its large number of international fairs and exhibitions (3rd), as well as its significant sports stadium capacity. Its tourism infrastructure is another strength, with its many hotel © 2013 World Economic Forum
  19. 19. Executive Summary xviii | The Travel & Tourism Competitiveness Report 2013 rooms, car rental facilities, and ATMs. Furthermore, its air transport infrastructure is highly developed and ranks among the top 10 worldwide. Spain has improved in a few areas since the last edition. In particular, starting a business has become less costly and onerous, according to the World Bank, and hotel prices have come down a bit. The government has also kept tourism high in its development agenda, making Spain a top 10 economy for prioritization of the industry. Spain has notably maintained its efforts on marketing activity and spending on the industry’s development amid difficult economic circumstances. The United Kingdom moves up by two more positions since the last edition of the Report, to reach 5th place this year. The country’s T&T competitiveness is based on its excellent cultural resources (ranked 3rd), with many World Heritage cultural sites, a large number of international fairs, and strong creative industries (all ranked within the top 10). The country has probably benefitted from two important events in 2012: the Olympic Games and the Diamond Jubilee of Queen Elizabeth II. Although the outcome is not yet fully reflected in the data, the United Kingdom has leveraged the preparation of these events in terms of tourism campaigns, generating interest in visiting the country Table 2: The Travel & Tourism Competitiveness Index 2013: Europe SUBINDEXES T&T regulatory Business environment T&T human, cultural, OVERALL INDEX framework and infrastructure and natural resources Regional Overall Country/Economy rank rank Score Rank Score Rank Score Rank Score Switzerland 1 1 5.66 1 5.94 1 5.42 2 5.63 Germany 2 2 5.39 8 5.57 6 5.29 7 5.31 Austria 3 3 5.39 2 5.80 11 5.11 9 5.24 Spain 4 4 5.38 14 5.48 5 5.30 6 5.36 United Kingdom 5 5 5.38 17 5.44 10 5.13 3 5.57 France 6 7 5.31 9 5.56 7 5.18 11 5.20 Sweden 7 9 5.24 12 5.54 23 4.89 8 5.30 Netherlands 8 13 5.14 16 5.45 15 5.01 16 4.97 Iceland 9 16 5.10 3 5.77 13 5.06 36 4.47 Finland 10 17 5.10 5 5.74 22 4.89 24 4.65 Belgium 11 18 5.04 18 5.43 26 4.78 18 4.90 Ireland 12 19 5.01 7 5.68 19 4.96 40 4.41 Portugal 13 20 5.01 20 5.42 27 4.78 19 4.84 Denmark 14 21 4.98 25 5.31 16 4.98 26 4.64 Norway 15 22 4.95 11 5.55 28 4.77 33 4.53 Luxembourg 16 23 4.93 21 5.41 20 4.96 39 4.42 Malta 17 24 4.92 15 5.47 14 5.06 49 4.22 Italy 18 26 4.90 50 4.90 29 4.76 14 5.05 Cyprus 19 29 4.84 22 5.35 21 4.89 46 4.27 Estonia 20 30 4.82 10 5.55 30 4.72 51 4.19 Czech Republic 21 31 4.78 28 5.24 37 4.49 28 4.61 Greece 22 32 4.75 39 5.02 33 4.65 30 4.58 Croatia 23 35 4.59 42 4.99 39 4.43 42 4.37 Slovenia 24 36 4.58 33 5.12 35 4.52 52 4.11 Hungary 25 39 4.51 26 5.29 49 4.16 54 4.08 Montenegro 26 40 4.50 34 5.09 50 4.14 47 4.26 Poland 27 42 4.47 49 4.92 58 3.94 32 4.56 Turkey 28 46 4.44 64 4.62 52 4.08 27 4.63 Latvia 29 48 4.43 35 5.08 40 4.40 77 3.81 Lithuania 30 49 4.39 41 4.99 48 4.19 61 3.98 Bulgaria 31 50 4.38 58 4.79 45 4.24 53 4.10 Slovak Republic 32 54 4.32 43 4.96 60 3.92 55 4.06 Russian Federation 33 63 4.16 92 4.24 46 4.22 58 4.02 Georgia 34 66 4.10 30 5.18 80 3.46 91 3.67 Romania 35 68 4.04 66 4.61 68 3.67 73 3.85 Macedonia, FYR 36 75 3.98 57 4.79 74 3.58 100 3.58 Ukraine 37 76 3.98 60 4.73 71 3.62 99 3.59 Albania 38 77 3.97 63 4.65 90 3.31 63 3.96 Armenia 39 79 3.96 51 4.88 88 3.34 94 3.65 Serbia 40 89 3.78 74 4.50 81 3.40 109 3.45 Bosnia and Herzegovina 41 90 3.78 75 4.47 95 3.19 92 3.66 Moldova 42 102 3.60 65 4.61 97 3.16 133 3.04 © 2013 World Economic Forum
  20. 20. Executive Summary The Travel & Tourism Competitiveness Report 2013 | xix and reinforcing their already-solid ICT and air transport infrastructure (ranked 10th and 5th, respectively). The generally supportive policy environment, ranked 8th, encourages the development of the sector, while the country relies on an excellent human resources base (ranked 6th). On a less positive note, the United Kingdom continues to receive one of the poorest assessments for price competitiveness (138th), in large part because it has the 2nd highest tax rate on tickets and airport charges worldwide. France is ranked 7th overall in this edition, losing four positions since 2011. France continues to attract many tourists with its rich cultural heritage (ranked 4th for the number of World Heritage cultural sites and 8th for creative industries). The country also hosts many international fairs and exhibitions (ranked 5th). France’s ground transport infrastructure is still one of the best in the world (ranked 5th), with particularly good roads and railroads as well as good air transport infrastructure (ranked 8th). However, the overall policy rules and regulation framework is not sufficiently supportive of developing the sector, and the prioritization of the T&T sector declines this year (ranked 35th overall). Additionally, the assessment has weakened somewhat in terms of the quality and availability of qualified labor in the country. Italy moves up one spot this year to place 26th overall and 18th in Europe. As well as its cultural richness—with many World Heritage Sites, international fairs and exhibitions, and rich creative industries— Italy’s strengths lie in its excellent tourism infrastructure (tying with Austria for 1st place) and its relatively good air transport infrastructure (24th). However, it faces a number of challenges that bring its overall rating down. These include policy rules and regulations that are still not sufficiently supportive of the development of the sector (100th) and a lack of price competitiveness (134th). Greece is ranked 32nd, down another three positions since the last assessment. The country’s rich cultural resources (ranked 25th) and excellent tourism infrastructure (3rd) are still important strengths. Additionally, Greece has very good health and hygiene conditions (ranked 13th overall) and good air transport infrastructure (20th). Further, there is a strong national affinity for tourism compared with many other European countries, including a generally open and positive attitude toward tourists. The decline in the rankings can be traced to a further worsening of the policy environment and a lower perceived prioritization of Travel & Tourism within the country, probably because of dwindling resources available for the particular industry amid general economic and financial difficulties. Turkey climbs four positions this year to reach 46th place. The country’s main strength continues to lie in its rich cultural resources (19th), with 20 World Heritage cultural sites, several international fairs and exhibitions, and strong creative industries. In addition, Turkey gains significantly in a number of areas and has seen a significant increase in tourist arrivals over the last two years. The policy rules and regulations governing the sector are supportive and have continued to progress since the 2011 T&T Report. Turkey has also improved its air transport infrastructure (29th) and its tourism infrastructure (45th). However, some areas still hold back the overall T&T competitiveness performance of the country: although improving, safety and security issues (79th) remain worrisome, ground transport infrastructure is inadequate (especially railroads and ports), and ICT infrastructure remains unsatisfactory (71st), especially for a rapidly growing tourism destination. In addition, more efforts must be made toward environmental sustainability (ranked 95th), an area that will be of increasing concern going forward. The Americas Table 3 shows the regional rankings for the countries in the Americas. As this table shows, the United States is the highest-ranked country in the Americas and 6th out of all countries, with stable performance since the last assessment. Overall, the country receives high marks for its business environment and infrastructure. In particular, the United States has excellent air transport infrastructure (ranked 2nd) and high-quality tourism infrastructure, as well as a strong focus on customer satisfaction. Its cultural resources and natural resources (ranked 5th and 3rd, respectively), with many World Heritage cultural and natural sites, drive its high position in the rankings, together with several fairs and exhibitions (1st) and strong creative industries (2nd). On a less positive note, the country’s natural endowments are not being sufficiently protected (ranked 112th for environmental sustainability). Also, compared with other top-ranked economies, the quality of ground transport could be improved more (27th) and the perception of safety and security leaves room for improvement (57th). Canada moves up one place to 8th overall. The country has several strengths, including its rich natural resources (10th) with numerous World Heritage sites (ranked 5th), excellent air transport infrastructure, highly qualified human resources (5th), and a strong policy environment (10th). Its cultural resources are also a strong point, with many international fairs and exhibitions in the country. Canada has lost some ground in terms of price competitiveness and environmental sustainability, where, although it still ranks fairly high (41st), it registers a decline in the perception of the enforcement of environmental regulations and continues to suffer from high CO2 per capita emissions. Barbados ranks 3rd in the region and 27th overall, up one place since the last assessment. Barbados comes in 2nd overall for the country’s affinity for Travel © 2013 World Economic Forum
  21. 21. Executive Summary xx | The Travel & Tourism Competitiveness Report 2013 & Tourism, with a positive attitude toward tourists and toward the value of tourism in the country, although it does receive a middling score for the degree of customer orientation (64th). The importance of the T&T sector for Barbados is reflected in the high prioritization placed on Travel & Tourism (8th), with significant emphasis put on the sector’s development by the government and high spending on the sector, ensuring effective destination- marketing campaigns and collecting relevant sector data on a timely basis. However, although there have been some marginal improvements in some elements of its environmental sustainability, additional efforts to protect the natural environment would reinforce the country’s strong T&T competitiveness. Panama witnesses one of the most marked improvements in this year’s TTCI, moving up to 37th position overall and 4th in the region. The country’s most important competitive advantage is its rich endowment of natural resources, with its diverse fauna, significant protected land areas, and a number of World Heritage sites. The improvement in this year’s rankings can be traced mainly to an improvement in the country’s infrastructure. Tourism infrastructure has been developed (now ranked 42nd), most notably with more available hotel rooms. The quality of ground transport has also improved across almost all modes, with port infrastructure now ranked 4th and railroads ranked 32nd. Air transport improves as well and is now ranked 16th. The expansion of stadium capacity and creative industries exports is also notable. On the other hand, areas requiring further improvement include safety and security (70th), the human resources base (79th), and health and hygiene standards (86th). Mexico is stable this year at 44th position (and 5th in the region). Mexico receives impressive marks for its natural resources (ranked 8th), an area that shows an improvement since the last assessment, with many World Heritage natural sites and rich fauna. The country’s cultural resources are also among the best in the world (21st), with 34 World Heritage cultural sites, several international fairs and exhibitions, and strong creative industries. These inherent strengths are reinforced by the overall prioritization of the sector in the country (34th) and effective marketing and branding campaigns. Some areas have improved, yet continue to require attention—for example, ground transport infrastructure is being developed but still ranks relatively low (69th), and more efforts are required to ensure that the sector is being developed in a sustainable way (105th). Finally, despite a marginal improvement since Table 3: The Travel & Tourism Competitiveness Index 2013: The Americas SUBINDEXES T&T regulatory Business environment T&T human, cultural, OVERALL INDEX framework and infrastructure and natural resources Regional Overall Country/Economy rank rank Score Rank Score Rank Score Rank Score United States 1 6 5.32 44 4.95 2 5.36 1 5.65 Canada 2 8 5.28 27 5.27 8 5.17 5 5.39 Barbados 3 27 4.88 13 5.50 18 4.96 50 4.20 Panama 4 37 4.54 54 4.83 36 4.52 45 4.29 Mexico 5 44 4.46 83 4.43 61 3.92 15 5.02 Costa Rica 6 47 4.44 52 4.88 56 3.98 38 4.45 Brazil 7 51 4.37 82 4.43 76 3.57 12 5.10 Puerto Rico 8 52 4.36 40 4.99 43 4.33 81 3.75 Chile 9 56 4.29 53 4.87 53 4.07 65 3.94 Uruguay 10 59 4.23 31 5.18 78 3.53 62 3.97 Argentina 11 61 4.17 69 4.54 72 3.61 41 4.38 Jamaica 12 67 4.08 59 4.76 64 3.76 87 3.72 Peru 13 73 4.00 96 4.17 85 3.36 37 4.47 Ecuador 14 81 3.93 85 4.37 83 3.38 56 4.05 Trinidad and Tobago 15 83 3.93 104 4.07 54 4.07 95 3.64 Colombia 16 84 3.90 101 4.11 103 3.09 34 4.51 Dominican Republic 17 86 3.88 67 4.60 75 3.58 108 3.45 Honduras 18 93 3.72 97 4.17 92 3.28 89 3.69 Nicaragua 19 95 3.67 98 4.15 101 3.11 82 3.74 Guatemala 20 97 3.65 109 3.93 98 3.15 69 3.88 Suriname 21 100 3.63 106 4.05 100 3.11 86 3.72 Guyana 22 103 3.60 80 4.44 111 2.88 106 3.47 El Salvador 23 104 3.59 99 4.14 82 3.39 125 3.24 Bolivia 24 110 3.46 125 3.55 102 3.09 85 3.73 Venezuela 25 113 3.41 119 3.67 99 3.12 110 3.45 Paraguay 26 115 3.39 103 4.09 115 2.80 120 3.29 Haiti 27 140 2.59 138 2.93 136 2.39 140 2.44 © 2013 World Economic Forum
  22. 22. Executive Summary The Travel & Tourism Competitiveness Report 2013 | xxi last year, safety and security remains the main source of concern for the T&T sector, where Mexico still ranks a low 121st. Brazil is ranked 7th in the Americas and 51st overall, up one position since 2011. The country is ranked 1st out of all countries for its natural resources and 23rd for its cultural resources, with many World Heritage sites, a good proportion of protected land area, and the richest fauna in the world. This is buttressed by a focus on environmental sustainability (ranked 30th), an area that has been improving over recent years, although the protection of the country’s diverse fauna requires additional efforts. The safety and security environment and health and hygiene conditions have also improved slightly since the last assessment. On the other hand, the ground transport network remains underdeveloped (129th), with the quality of roads, ports, and railroads requiring improvement to keep pace with the economic development of the country. Preparations for two major sports events in the next five years (the FIFA World Cup in 2014 and the Olympic Games in 2016) provide opportunities to bridge the infrastructure gap. Brazil also continues to suffer from a lack of price competitiveness (126th), with high and increasing ticket taxes and airport charges, as well as high and rising prices more generally. Further, the overall policy environment is not particularly conducive to the development of the sector (ranked 119th), with discouraging rules on FDI, much time required for starting a business, and somewhat restrictive commitments to opening up tourism services under GATS commitments. Chile ranks 9th in the region and 56th overall, maintaining a stable performance since the last assessment. It has notable cultural resources, with six World Heritage cultural sites and several international fairs and exhibitions. In addition, policy rules and regulations are conducive to the development of the T&T sector (12th), with few foreign ownership restrictions, a liberal visa regime, and open bilateral Air Service Agreements, although the time and cost for starting new businesses remain relatively high. The country also benefits from good safety and security by regional standards (31st). Additionally, tourism infrastructure has improved noticeably and now rank 49th. However, Chile’s T&T competitiveness would be strengthened by upgrading its transport infrastructure and thus raising the quality of tourism infrastructure further, as well as by focusing more on preserving the environment to develop the industry in a more environmentally sustainable way. Peru is ranked 13th in the region, placing 73rd overall. Peru’s natural and cultural resources remain important assets for the tourism industry. The country has one of the richest fauna in the world (3rd) and hosts several natural and cultural World Heritage sites. Peru has seen a continuous growth in tourist arrivals and international flights, even during the global recession. The effectiveness of marketing and branding to promote the T&T sector shows improvement, and government spending on the industry has increased slightly. However, in order to raise its T&T competitiveness further, safety and security must be improved (118th) and ground transport infrastructure must be upgraded (121st). Additionally, the country has lost some price competitiveness because of higher general and tourism- specific taxation, most notably the high ticket taxes and airport charges (where the country ranks 135th). A more in-depth analysis of the performance of the T&T competitiveness of Peru will be conducted in a dedicated publication to be issued in April 2013, on occasion of the World Economic Forum on Latin America 2013. Asia Pacific Table 4 displays the regional rankings and data for the Asia Pacific region. As the table shows, Singapore is the top-ranked economy in the region at 10th position overall, the same position it has held for the past three editions. Singapore benefits from excellent transport infrastructure, with ground transport infrastructure and air transport infrastructure ranked 2nd and 14th, respectively. Singapore ranks 2nd for the high quality of its available human resources. And with its famously well-functioning public institutions, it is perhaps not surprising that Singapore ranks 1st out of all economies for its policy environment, with rules and regulations that are extremely conducive to the development of its T&T industries (policies facilitating foreign ownership and FDI, well-protected property rights, and few visa restrictions). Further, Singapore is among the safest economies of all assessed with regard to safety and security, and receives strong assessments for other types of infrastructure. One area of concern is its price competitiveness, which has eroded as seen in increasing hotel prices and taxation. Singapore is followed in the regional rankings by Australia, which improves by two places and is now at 11th position overall. Australia’s T&T competitiveness continues to be characterized by a number of clear strengths, including its rich natural resources and the highest number of World Heritage natural sites in the world, benefiting from diverse fauna and a comparatively pristine natural environment. Given the importance of the environment for much of its leisure tourism, it is notable that the stringency and enforcement of its environmental regulations are well assessed. And given the country’s distance from other continents and the related importance of domestic air travel to overcome the large distances between major sites, its competitiveness is also buttressed by excellent air transport infrastructure (ranked 4th) as well as good general tourism infrastructure (ranked 20th). Australia also sees some improvements in the policy rules and regulations affecting the sector, especially its increased © 2013 World Economic Forum
  23. 23. Executive Summary xxii | The Travel & Tourism Competitiveness Report 2013 openness in bilateral Air Service Agreements. In terms of visa requirements, Australia has one of the most advanced visa policies in the world (especially with respect to the electronic visa process) at a time when a number of other countries are moving in the opposite direction. New Zealand ranks 3rd in the region and 12th overall, an improvement of seven positions, one of the most significant in the region. The country continues to benefit from its rich natural resources, with a number of World Heritage natural sites (ranked 18th) and a pristine natural environment (ranked 3rd), protected by strong and well-enforced environmental legislation. The country’s policy rules and regulations are highly conducive to the development of the sector (ranked 2nd), with very transparent policymaking and among the least time and lowest cost required to start a business in the world. The country also benefits from high-quality human resources (ranked 13th) and a very safe and secure environment overall (9th). Although New Zealand’s ground transport network remains somewhat underdeveloped given its advanced stage of development, its air transport infrastructure gets excellent marks (ranked 12th) and its ICT infrastructure is quite good by international standards. The most relevant improvement in New Zealand’s performance in this edition is registered in its tourism infrastructure, driven especially by a rise in the number of available hotel rooms. Japan is ranked 4th regionally and 14th out of all the economies in the TTCI, up eight places since the last assessment. This achievement is especially impressive against the backdrop of the 2011 tsunami and related nuclear disaster. Japan’s T&T sector resilience can be ascribed to its rich cultural resources (ranked 11th), with its 32 World Heritage cultural sites, the many international fairs and exhibitions hosted by the country, and its rich creative industries. Its ground transport infrastructure is among the best in the world (ranked 7th), especially its railroads, and Japan continues to lead in the area of education and training (ranked 13th). Moreover, it has continued to develop its already strong ICT infrastructure and now ranks 7th in this area. In addition, Japan’s extremely customer oriented culture (1st) is an important strength for the T&T industry. On the other hand, the country continues to be an expensive destination, ranking 130th in the price competitiveness pillar. Hong Kong SAR is ranked 15th. Its transport infrastructure is among the most developed in the world, with the best ground transport infrastructure and air transport infrastructure that ranks 6th. Further, the economy’s ICT infrastructure ranks 2nd worldwide, demonstrating an important support for an industry that Table 4: The Travel & Tourism Competitiveness Index 2013: Asia Pacific SUBINDEXES T&T regulatory Business environment T&T human, cultural, OVERALL INDEX framework and infrastructure and natural resources Regional Overall Country/Economy rank rank Score Rank Score Rank Score Rank Score Singapore 1 10 5.23 6 5.74 4 5.31 25 4.64 Australia 2 11 5.17 23 5.32 25 4.81 4 5.39 New Zealand 3 12 5.17 4 5.75 12 5.06 22 4.69 Japan 4 14 5.13 24 5.31 24 4.86 10 5.22 Hong Kong SAR 5 15 5.11 19 5.43 3 5.32 29 4.59 Korea, Rep. 6 25 4.91 38 5.02 17 4.98 20 4.74 Taiwan, China 7 33 4.71 29 5.19 34 4.63 44 4.29 Malaysia 8 34 4.70 55 4.82 41 4.36 17 4.93 Thailand 9 43 4.47 76 4.47 44 4.25 23 4.68 China 10 45 4.45 71 4.50 63 3.77 13 5.09 India 11 65 4.11 110 3.92 67 3.69 21 4.72 Indonesia 12 70 4.03 95 4.18 84 3.36 31 4.56 Brunei Darussalam 13 72 4.01 94 4.18 57 3.94 67 3.91 Sri Lanka 14 74 3.99 61 4.68 86 3.35 66 3.93 Azerbaijan 15 78 3.97 46 4.94 87 3.34 96 3.63 Vietnam 16 80 3.95 88 4.30 94 3.26 43 4.30 Philippines 17 82 3.93 70 4.51 89 3.33 64 3.95 Kazakhstan 18 88 3.82 62 4.66 79 3.48 119 3.30 Mongolia 19 99 3.63 91 4.25 107 2.96 90 3.69 Cambodia 20 106 3.56 105 4.06 112 2.86 78 3.77 Kyrgyz Republic 21 111 3.45 93 4.23 131 2.61 103 3.51 Nepal 22 112 3.42 100 4.14 128 2.64 105 3.48 Tajikistan 23 114 3.41 90 4.28 123 2.69 122 3.26 Pakistan 24 122 3.25 131 3.38 104 2.99 116 3.38 Bangladesh 25 123 3.24 124 3.56 109 2.91 124 3.24 © 2013 World Economic Forum
  24. 24. Executive Summary The Travel & Tourism Competitiveness Report 2013 | xxiii depends so much on ICTs. Additionally, Hong Kong benefits from strong safety and security (3rd) as well as a conducive business environment, coming in 3rd in the policy rules and regulations pillar. It also receives relatively good marks for cultural resources, with many international fairs and exhibitions and strong creative industries. However, Hong Kong trails other advanced economies in the region for its lack of emphasis on environmental sustainability, where it ranks a low 118th. Korea, Rep. is ranked 25th, just ahead of Taiwan and Malaysia in the regional rankings and improving by seven places. Korea’s strengths lie in its excellent ground transport and ICT infrastructure (ranked 16th and 1st, respectively) and its rich cultural resources (ranked 10th). Its rise in the overall rankings is driven by improvements in almost all the pillars, with a measurable increase in the prioritization and affinity for Travel & Tourism, thanks to increased marketing and branding efforts, and a high degree of customer orientation (9th). On a less positive note, Korea remains a relative costly destination (ranked 96th for price competitiveness) and, despite much discussion in public discourse, the tourism sector is not being developed in a sufficiently sustainable way (69th), although there are improvements since the last assessment. Malaysia is ranked 8th regionally and 34th overall, up one position since the 2011 ‑Report. Malaysia benefits from its rich natural resources (ranked 18th) and its cultural resources (ranked 31st). The country also benefits from excellent price competitiveness (ranked 5th), with comparatively low fuel prices, low ticket taxes and airport charges, competitive hotel prices, and a favorable tax regime. Malaysia’s policy environment is assessed as very conducive to the development of the sector (ranked 9th), an area that has improved since the last assessment, and the country is characterized by a strong affinity for Travel & Tourism more generally (ranked 16th). However, health and hygiene indicators trail those of many other countries in the region, with, in particular, a low physician density and few hospital beds available. Further, environmental sustainability remains an area for improvement, with high emission levels and several threatened species, although business leaders feel that efforts are being made in this area. Thailand is ranked 9th in the region and 43rd overall. The country declines by only two places since the last edition, demonstrating some resilience to the natural disasters and political unrest with which the country has been grappling. Thailand is endowed with rich natural resources and a strong affinity for Travel & Tourism (ranked and 23rd and 18th, respectively), with a very friendly attitude of the population toward tourists (ranked 13th). This is buttressed by the government’s strong prioritization of the sector, with good destination- marketing campaigns (11th) and relative price competitiveness (25th). However, some weaknesses remain: despite the prioritization of the sector by the government, some aspects of the regulatory environment—such as the protection of property rights and the long time required for starting a business—are not particularly conducive to developing the sector (ranked 77th). In addition, given the importance of the natural environment for the country’s tourism, environmental sustainability should be a greater priority (ranked 99th on this indicator). China is ranked 10th regionally, losing six places and falling to 45th overall this year. China continues to build on some clear strengths: it comes in 5th for its natural resources, with many World Heritage natural sites and fauna that are among the richest in the world. It places 15th for its cultural resources, with several World Heritage cultural sites, many international fairs and exhibitions, and creative industries that are unsurpassed. Moreover, the country continues to develop its infrastructure, with improvements in air transport (35th) and ground transport (51st). However, some weaknesses pull the country’s ranking down. China’s policy environment is not highly conducive to the T&T sector’s development (ranked 86th). Furthermore, there are increasing concerns related to the sustainable development of the sector (109th). China’s tourism infrastructure remains underdeveloped (ranked 101th), with few international-quality standard hotel rooms available and few ATMs, and the country receives a poor assessment for its general affinity for Travel & Tourism, where it ranks 129th. Finally, although the country continues to benefit from relative price competitiveness (ranked 37th), this advantage has started to weaken under the weight of increasing inflation in several areas, as demonstrated by higher hotel prices and weakening purchasing power. India is ranked 11th in the region and 65th overall, gaining three places since the last edition. As with China, India is well assessed for its natural resources (ranked 9th) and cultural resources (24th), with many natural and cultural World Heritage sites, rich fauna, many fairs and exhibitions, and strong creative industries. India also has quite good air transport (ranked 39th), particularly given the country’s stage of development, and reasonable ground transport infrastructure (ranked 42nd), although the quality of roads (85th) and of ports (79th) require further improvement. In addition, India remains a relatively price competitive destination (20th), even in the regional context. However, some aspects of its tourism infrastructure remain somewhat underdeveloped (ranked 95th), with very few hotel rooms per capita by international comparison and low ATM penetration. ICT infrastructure also remains somewhat underdeveloped and underexploited (111th). Another area of concern is the policy environment, which is ranked 125th because of the long time and high cost required to start a business, a restrictive visa policy (132nd), and low level © 2013 World Economic Forum
  25. 25. Executive Summary xxiv | The Travel & Tourism Competitiveness Report 2013 of commitment in GATS agreements for tourism services (114th). Other areas requiring attention are health and hygiene standards (109th) and the country’s human resources base (96th). Indonesia is ranked 12th in the region, right behind India the regional rankings and 70th overall, up four places since the last edition. In terms of strengths, Indonesia places 6th for its excellent natural resources, with several World Heritage natural sites and the richness of its fauna as measured by the known species in the country. Indonesia also has rich cultural resources (ranked 38th), with 10 World Heritage cultural sites, a number of international fairs and exhibitions held in the country, and strong creative industries. Further, the country is ranked 9th overall on price competitiveness in the T&T industry because of its competitive hotel prices (ranked 21st), low ticket taxes and airport charges, and favorable fuel prices. In addition, it is ranked 19th for its national prioritization of Travel & Tourism. However, these strengths are held back by underdeveloped infrastructure in the country, especially ground transport (87th), tourism infrastructure (113th), and ICT infrastructure (87th); together these represent significant investment opportunities in the country. There are also some concerns related to safety and security, particularly the business costs of crime and potential terrorism. In addition, Indonesia is not ensuring the environmentally sustainable development of the tourism sector (ranked 125th), an area of particular concern given the sector’s dependence on the quality of the natural environment. The Philippines is the most improved country in the region, ranking 16th regionally and 82nd overall, up 12 places since the last edition. Among the country’s comparative strengths are its natural resources (44th), its price competitiveness (24th), and a very strong—and improving—prioritization of the Travel & Tourism industry (this indicator ranks 15th, as government spending on the sector as a percentage of GDP is now 1st in the world, and tourism marketing and branding campaigns are seen to be increasingly effective). In addition, the country has been ensuring that several aspects of its policy rules and regulations regime are conducive to the development of the T&T sector. Among these are better protection of property rights, more openness toward foreign investments, and few visa requirements for foreign visitors (ranked 7th). However, other areas—such as the difficulty of starting a business in the country, in both cost and length of the process (ranked 94th and 117th, respectively)—remain a challenge. Moreover, safety and security concerns (ranked 103rd); inadequate health and hygiene (94th); and underdeveloped ground transport, tourism, and ICT infrastructure are all holding back the potential of the economy’s T&T competitiveness. The Middle East and North Africa Table 5 shows the regional rankings for the Middle East and North Africa region. As the table shows, the United Arab Emirates (UAE) continues to lead the region at 28th overall, up two places since the last assessment. Although the UAE is not endowed with rich natural resources, it has built a cultural resource base, attracting both leisure and business travelers, with several and growing international fairs and exhibitions and increasingly diverse creative industries. In addition, the country is characterized by a strong affinity for Travel & Tourism (24th). Perhaps the most important competitive advantage of UAE T&T competitiveness relates to its world-class international hubs for global air travel. Further, the country has carried out effective marketing and branding campaigns (1st) and has embraced policy rules and regulations that are conducive to the development of the sector (13th). In particular, the country is open to foreign investments (14th) and has a liberal visa regime (33rd). Environmental sustainability, although improving somewhat compared with past years, continues to be an area of some concern (ranked 91st). Hotel prices are also somewhat high by international standards (101st). Qatar is ranked 2nd in the region and 41st overall, up one place since the last assessment. Qatar benefits from a safe and secure environment (ranked 21st), good ICT and tourism infrastructures (32nd and 37th, respectively), and excellent air transport infrastructure (23rd), in line with its role as an air transportation hub. The ease of hiring foreign labor (4th), increasing enrollment rates, and the quality of its education drive the ability of the country to find high-quality human resources (ranked 7th) inside and outside the country. Qatar also has a high degree of customer orientation (5th). In order to further enhance the country’s T&T competitiveness, Qatar should continue to improve its focus on environmental sustainability (59th) and ensure that it does not lose sight of the importance of the sector for its development—at a rank of 80 in this edition, the prioritization of the sector is somewhat lower than in past years. Israel is ranked 3rd in the region, dropping seven places to 53rd overall. Israel benefits from its cultural attributes, including a number of World Heritage cultural sites. The country’s human resources base is also well evaluated (31st), providing healthy and well- trained people to work in the T&T sector. Further, its ICT infrastructure is quite well developed (27th), while its health and hygiene gets a good mark (26th), especially in a regional context. On a less positive note, some aspects of safety and security continue to erode at the country’s T&T competitiveness: these are primarily related to concerns about terrorism (Israel ranks 124th on this indicator, somewhat lower than in the last edition). However, the decline in rank since the last © 2013 World Economic Forum
  26. 26. Executive Summary The Travel & Tourism Competitiveness Report 2013 | xxv assessment can also be attributed to diminished price competitiveness (ranked 133rd), the result of increasing fuel prices, hotel prices, ticket taxes, and airport charges and the perception that general taxation has become more distortionary. Bahrain is ranked 4th in the region and 55th overall, down 15 positions since the last assessment. The country maintains a number of clear strengths: good transport infrastructure, particularly ground transport infrastructure (ranked 11th); high-quality human resources in the country (26th); and strong price competitiveness (7th). However, Bahrain is seeing a weakening in the assessment of its tourism infrastructure (66th), while health and hygiene standards (89th) and ICT infrastructure (47th) struggle to keep up with rapid population growth. Also its limited natural resources (129th) and environmental sustainability (103rd) do not help the country to attract tourists. Sub-Saharan Africa Table 6 shows the results for the sub-Saharan region which sees the Seychelles entering the rankings for the first time at the top of the region, and 38th overall. The importance of Travel & Tourism for the country’s economy is reflected in its top ranking for the prioritization of the industry, with the 2nd highest T&T expenditure–to-GDP ratio in the world and effective marketing and branding campaigns. These efforts are reinforced by a strong national affinity for Travel & Tourism (5th); good tourism infrastructure, especially in terms of available hotel rooms (6th); and good ground and air transport infrastructures, particularly by regional standards (31st and 27th, respectively). These positive attributes somewhat make up for its relative lack of price competitiveness (120th). Although the natural environment is now assessed as being in good condition, efforts to develop the industry in a sustainable way could be reinforced, for example by increasing marine and terrestrial protection, which would help to protect the many threatened species in the country (132nd). Mauritius loses its number one spot in the regional rankings, overtaken by the entry of the Seychelles this year, and is ranked 58th overall. The prioritization of the industry remains high (3rd), together with a strong national affinity for Travel & Tourism (6th). The country’s tourism and ground infrastructure are well developed by regional standards (48th and 37th, respectively), and its policy environment is supportive of the development of the sector (ranked 28th). Mauritius also benefits from high marks for safety and security (36th). However, the country has seen its price competitiveness decline significantly (ranked 75th, down from 18th in the last assessment)—primarily the result of increasing hotel and fuel prices and high ticket taxes and airport charges. Additionally, in terms of challenges, the country’s environmental sustainability has received a weakened assessment, of particular concern given the importance of the natural environment for the country’s leisure tourism. South Africa is ranked 3rd in the region and 64th overall, gaining two places since the last edition. South Africa comes in high at 17th place for its natural resources and 58th for its cultural resources, based on its many World Heritage sites, its rich fauna, its creative industries, and the many international fairs and exhibitions held in the country. Infrastructure in South Africa is also well developed for the region, with air transport infrastructure ranked 43rd and a particularly good assessment of railroad quality (46th) and road Table 5: The Travel & Tourism Competitiveness Index 2013: The Middle East and North Africa SUBINDEXES T&T regulatory Business environment T&T human, cultural, OVERALL INDEX framework and infrastructure and natural resources Regional Overall Country/Economy rank rank Score Rank Score Rank Score Rank Score United Arab Emirates 1 28 4.86 45 4.95 9 5.14 35 4.51 Qatar 2 41 4.49 48 4.93 31 4.70 75 3.85 Israel 3 53 4.34 36 5.07 51 4.08 71 3.86 Bahrain 4 55 4.30 77 4.46 32 4.69 83 3.74 Oman 5 57 4.29 56 4.81 47 4.20 76 3.84 Jordan 6 60 4.18 37 5.05 69 3.63 72 3.86 Saudi Arabia 7 62 4.17 87 4.32 38 4.43 80 3.76 Lebanon 8 69 4.04 73 4.50 65 3.74 70 3.87 Morocco 9 71 4.03 68 4.59 73 3.60 68 3.89 Egypt 10 85 3.88 86 4.35 77 3.56 84 3.74 Iran, Islamic Rep. 11 98 3.64 112 3.90 96 3.18 74 3.85 Kuwait 12 101 3.61 114 3.81 62 3.89 131 3.14 Algeria 13 132 3.07 134 3.30 126 2.66 123 3.25 Yemen 14 133 2.96 140 2.82 110 2.89 128 3.18 Mauritania 15 134 2.91 137 3.07 133 2.60 132 3.07 © 2013 World Economic Forum
  27. 27. Executive Summary xxvi | The Travel & Tourism Competitiveness Report 2013 quality (42nd). Overall, policy rules and regulations are conducive to the sector’s development (ranked 29th); this is an area where the country has improved steadily over the past few assessments, with well-protected property rights and few visa requirements for visitors. Indeed, tourism continues to be one of the five priority sectors in the country’s growth plan, and the government has reviewed tourism legislation in an effort to streamline it further. However, there are also some areas of weakness that have brought down the country’s overall ranking. Safety and security remains quite worrisome (ranked 117th), as does the level of health and hygiene (87th)— the result of low physician density and concerns about access to improved sanitation. Related to this, human resources are also negatively affected by the poor health of much of the workforce, with a low life expectancy (129th, at 52 years) driven by high rates of communicable diseases such as HIV (137th). Improving the health of the workforce is of urgent concern for the future of the T&T sector, as well as for all other sectors in the economy. Additionally, this year South Africa has experienced an increase in fuel prices (77th) and ticket taxes and airport charges (105th), which have diminished its price competitiveness. Namibia reaches 5th place the regional rankings, coming in at 91st overall. The country benefits from its rich natural resources, with rich fauna and a pristine natural environment. Indeed, environmental sustainability is prioritized to some extent in the country (ranked 36th), which is critical given the importance of the quality of the environment for Namibia’s tourism. In addition, ground transport infrastructure is somewhat developed by regional standards (60th). In order to further develop the sector, a more conducive policy environment will be important. For example, despite efforts in recent years, it remains costly and time consuming to start a business. Health and hygiene is also not up to international standards (106th): the country has few doctors and insufficient access to improved sanitation and drinking water. More generally, improving the country’s human resources base (130th) through better education and training and more conducive labor laws will be critical. Botswana is ranked 7th in the region and 94th overall, down three places since the last edition of Table 6: The Travel & Tourism Competitiveness Index 2013: Sub-Saharan Africa SUBINDEXES T&T regulatory Business environment T&T human, cultural, OVERALL INDEX framework and infrastructure and natural resources Regional Overall Country/Economy rank rank Score Rank Score Rank Score Rank Score Seychelles 1 38 4.51 47 4.94 42 4.35 48 4.26 Mauritius 2 58 4.28 32 5.16 55 4.04 93 3.65 South Africa 3 64 4.13 81 4.44 59 3.93 57 4.03 Cape Verde 4 87 3.87 79 4.45 66 3.72 107 3.45 Namibia 5 91 3.77 89 4.30 70 3.62 115 3.38 Gambia, The 6 92 3.73 72 4.50 93 3.27 111 3.43 Botswana 7 94 3.71 84 4.38 91 3.31 112 3.43 Kenya 8 96 3.66 108 3.98 105 2.98 60 4.01 Rwanda 9 105 3.56 78 4.46 117 2.74 104 3.49 Senegal 10 107 3.49 111 3.91 113 2.84 88 3.71 Zambia 11 108 3.46 102 4.11 122 2.69 98 3.60 Tanzania 12 109 3.46 118 3.67 125 2.68 59 4.02 Uganda 13 116 3.39 116 3.71 121 2.70 79 3.76 Ghana 14 117 3.38 113 3.86 108 2.94 117 3.35 Zimbabwe 15 118 3.33 117 3.67 116 2.76 101 3.56 Swaziland 16 119 3.31 107 4.02 106 2.96 135 2.94 Ethiopia 17 120 3.29 122 3.60 127 2.65 97 3.61 Cameroon 18 121 3.27 123 3.58 124 2.68 102 3.56 Malawi 19 124 3.22 115 3.77 135 2.48 113 3.43 Mozambique 20 125 3.17 121 3.64 120 2.72 130 3.15 Côte d’Ivoire 21 126 3.15 133 3.31 118 2.73 114 3.41 Nigeria 22 127 3.14 135 3.26 114 2.83 118 3.33 Burkina Faso 23 128 3.12 120 3.64 134 2.55 129 3.16 Mali 24 129 3.11 128 3.45 129 2.61 121 3.28 Benin 25 130 3.09 127 3.46 130 2.61 126 3.20 Madagascar 26 131 3.09 132 3.33 119 2.73 127 3.20 Lesotho 27 135 2.89 126 3.46 132 2.60 139 2.62 Guinea 28 136 2.88 136 3.24 137 2.38 134 3.03 Sierra Leone 29 137 2.87 129 3.43 138 2.36 137 2.81 Burundi 30 138 2.82 130 3.40 139 2.33 138 2.73 Chad 31 139 2.61 139 2.90 140 2.11 136 2.82 © 2013 World Economic Forum